EUR/USD Daily Video, March 31, 2011

[Sive Morten]

Good morning,
It is a bit dangerous trading by trend to my mind. So, wait for some intraday reversal patterns around 1.4160, such as hourly DRPO "Sell" for example:




The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.

 

[Venelin]

Thanks Sive- another great video! What`s the usual target of a DRPO pattern in any timeframe?

 

[erich]

trend

hi Sive,

in your yesterday's video research you determine the trend with the macd-predictor and on a higher time frame with the macd?
are both methods ok on the same time frame or is macd predictor the more precise method so that you can say, the macd shows down trend, but prize is above macd predictor so that overrules the macd?

is the displaced 3x3 MA and the MACD not enough for precisely determine the trend?

nice day,
Erich

 

[Sive Morten]

Thanks Sive- another great video! What`s the usual target of a DRPO pattern in any timeframe?

Usually 1.0 or 1.618 extension from ABC-pattern based on DRPO peaks.

hi Sive,

in your yesterday's video research you determine the trend with the macd-predictor and on a higher time frame with the macd?
are both methods ok on the same time frame or is macd predictor the more precise method so that you can say, the macd shows down trend, but prize is above macd predictor so that overrules the macd?

is the displaced 3x3 MA and the MACD not enough for precisely determine the trend?

nice day,
Erich

Hi Erich.
MACD and MACDP are the same. The only difference is that MACD shows trend shifting by line crossing. MACDP - by line and price crossing. Other words, MACDP allows to see precise price at which trend will shift. But the moment of trend shifting is the same as for MACD as for MACDP.
MACDP is a derrivative indicator from MACD. It based on MACD. So they show absolutely the same.
But, MACDP allows clearer see Stop grabbers and Dynamic Pressure. It much harder with MACD, or even impossible sometimes.

3x3 is not for trend estimation. It's for recognizing of Directional patterns - B&B, DRPO and others.
Don't be confused with DiNapoli book, when he wrote, that he uses DMA for trend identification. He has used it before MACD/Stochastic, and just describes the method. But currently is as follows:
Trend - MACD/Stoch, MACD or MACDP
Directional patterns - 3x3
Additionally you may apply 25x5, for example. Sometimes it could be useful.

 

[erich]

macd

thanks Sive,

oh, I see, MACDP based on MACD!

"MACDP allows to see precise price at which trend will shift..."
this is of course an enormous advantage, because you know the exact stop loss, if price comes back and crosses the MACDP-line; I only have MACD and if it's indicating an uptrend and the faster line comes back to the slower line then I hesitate, will trend break or not; I can only anticipate a crossover of the lines; with the MACDP additionally I see the crossover of the exact price;
ok, I see!
thanks Sive
ps: I don't want to make advertising but whselfinvest.com charge 100$ monthly for all DiNapoli tools; what do you think? ok, fair, expensive?

 

[Sive Morten]

thanks Sive,

oh, I see, MACDP based on MACD!

"MACDP allows to see precise price at which trend will shift..."
this is of course an enormous advantage, because you know the exact stop loss, if price comes back and crosses the MACDP-line; I only have MACD and if it's indicating an uptrend and the faster line comes back to the slower line then I hesitate, will trend break or not; I can only anticipate a crossover of the lines; with the MACDP additionally I see the crossover of the exact price;
ok, I see!
thanks Sive
ps: I don't want to make advertising but whselfinvest.com charge 100$ monthly for all DiNapoli tools; what do you think? ok, fair, expensive?

Hm, look:
In CQG it costs 100 or 130$ (I do not remember exactly) for full DiNapoli pack
But, take in consideration, that CQG is one of the best market data provider (DiNapoli tells that they Best of the best).
CQG has authorization contract, and DiNapoli itself confirms that his indicators in CQG absolutely correct. Even more - you get MACDP directly from DiNapoli (By e-mail).
From that point of view - this is not very expensive.

But, who is whselfinvest.com? Do they have an authorization for providing Napoli tools? Does Napoli confirm that they have correct indicators?
I might say that if they offer them for MT4 - this is bootleg. Because DiNapoli does not have indicators for MT4.
IF they bootleg, then I think it could be found in the net much cheaper. Although the problem of their applicability remains intact.
Here is my point of view...
I suggest you should visit official DiNapoli web cite and check for software part - here he should specify what data providers have their copyright indicators.
The most easy way - get formulas for omega tradestation and metastock, or program them for MT4. Long time I've used only MACD, Stoch and DOSC. This is not so good as OscP and MACDP, but this is sufficient for trading and applying his tools, believe me.

 

[Venelin]

.

But currently is as follows:
Trend - MACD/Stoch, MACD or MACDP
Directional patterns - 3x3
Additionally you may apply 25x5, for example. Sometimes it could be useful.

Hi Sive,

In what way do you utilize 25x5 MA- as a trend or directional indicator? Or something in between?When you have the time could you elaborate a bit more on utilizing 25x5 ma? Thanks in advance!

 

[Sive Morten]

Hi Sive,

In what way do you utilize 25x5 MA- as a trend or directional indicator? Or something in between?When you have the time could you elaborate a bit more on utilizing 25x5 ma? Thanks in advance!

Hi Venelin,
25x5 very useful to estimate possible reversal on long-term charts, as weekly and monthly. If market, after some previous trend move through 25x5 - this is a possible sign for reversal.
Second, market very rare breaks it during the first touch.
Third, very often market retest 25x5 from the other side after breakout.

So, usually I use 25x5 on longer time frames particular for these purposes.
You may use it as trend indicator. But, to my mind MACD is better. So, 25x5 is just an addition to overall context.

 

[erich]

whselfinvest

hi Sive,
WH Selfinvest (Luxemburg) is beside ducascopy (Swiss) one of the fair forex broker in Europe. the broker offers two java platforms (pro-station for forex and future-station); so no MT4 at all; they must have the rights or the authorization to build in the DiNapoli's tools, wouldn't they?
Sive, did you complete the contract with CQG from Europe or from USA? isn't it too complicated to have CQG as provider? (slow withdraws, regulatory restrictions, ect. )
cu, Erich

 

[Venelin]

Hi Venelin,
25x5 very useful to estimate possible reversal on long-term charts, as weekly and monthly. If market, after some previous trend move through 25x5 - this is a possible sign for reversal.
Second, market very rare breaks it during the first touch.
Third, very often market retest 25x5 from the other side after breakout.

So, usually I use 25x5 on longer time frames particular for these purposes.
You may use it as trend indicator. But, to my mind MACD is better. So, 25x5 is just an addition to overall context.

Thanks a bunch, Sive!